Match the following:

Choose the correct answer from the options given below.

A-II, B-III, C-IV, D-I

The correct answer is option 4- A-II, B-III, C-IV, D-I .

* Goodwill accounted - Purchased goodwill may be accounted for in the books and shown as an asset, where it is accounted for in the books and shown as assets, it should be written off as early as possible, but where it is to be written- off in more than one accounting year, it should be written off in a period not exceeding 10 years. In line with what is prescribed by the Accounting Standard, goodwill appearing in the balance sheet in written off at the time of firm's reconstitution.

* Existing goodwill- Goodwill appearing in the books will be written-off by debiting old partners' capital accounts in their old profit-sharing ratio. Thereafter new value of goodwill will be given effect. 

* Hidden goodwill- Sometimes the value of goodwill is not given at the time of admission of a new partner. In such a situation it has to be inferred from the arrangement of the capital and profit-sharing ratio.

* Goodwill not accounted - Self - generated goodwill is not accounted for in the books and shown as an asset. Thus if self generated goodwill be debited to goodwill account it should be written - off in the same financial year and should not be shown as an asset in the balance sheet. Alternatively value of goodwill may be adjusted by deducting new partners' current account and crediting in their sacrificing ratio. The effect under both the methods is same